Archeo Reports $1,9 Million in Domain Name Sales During the First Quarter of 2014

Marchex announced recently its financial results for the first quarter ended March 31,2014. Moreover, Archeo reported $1,9 million in domain sales during the first quarter of 2014.

You can read the press release after the jump:

“-Marchex, Inc. (NASDAQ:MCHX), a mobile advertising technology company, today announced its financial results for the first quarter ended March 31, 2014.

“As the first quarter demonstrates, advertisers are increasingly turning to Marchex as they begin to boost spending in mobile performance advertising”

“As the first quarter demonstrates, advertisers are increasingly turning to Marchex as they begin to boost spending in mobile performance advertising,” said Russell Horowitz, Chairman and CEO of Marchex. “With the rapid adoption of mobile, consumer phone calls are fast-becoming one of the most important outcomes of mobile ad campaigns. Advertisers now want a better understanding of these over-the-phone interactions. Marchex is ideally positioned to meet this new and growing market, based on our early investment in our Call Analytics technology platform and pay-for-call marketplace.”

Q1 2014 Financial Highlights1

GAAP revenue was $50.5 million for the first quarter of 2014, compared to $34.7 million for the first quarter of 2013. Non-GAAP revenue2, which excludes domain sales recorded in revenue, was $48.6 million for the first quarter of 2014.

GAAP net income from continuing operations was $846,000 for the first quarter of 2014, compared to a GAAP net income from continuing operations of $116,000 for the first quarter of 2013.

GAAP net income from continuing operations attributable to common stockholders per diluted share was $0.02 for the first quarter of 2014. This compares to GAAP net income from continuing operations attributable to common stockholders per diluted share of $0.00 for the first quarter of 2013.

   Q1 2014      Q1 2013

GAAP Revenue       $50.5 million       $34.7 million

Non-GAAP Results:                

Non-GAAP Revenue 2, 4       $48.6 million       $34.7 million

Call-Driven and Related Revenue       $45.5 million       $31.1 million

Archeo Revenue excluding domain gains and sales 2, 4       $3.1 million       $3.6 million

Call-Driven Adjusted OIBA4       $2.4 million       $1.4 million

Call-Driven Adjusted EBITDA4       $3.3 million       $2.2 million

Adjusted OIBA3, 4       $4.7 million       $3.6 million

Adjusted EBITDA3, 4       $5.7 million       $4.5 million

Adjusted OIBA excluding domain gains and sales4       $2.8 million       $2.2 million

Adjusted EBITDA excluding domain gains and sales4       $3.8 million       $3.2 million

Adjusted non-GAAP EPS3 from continuing operations for the first quarter of 2014 was $0.08, compared to $0.07 for the first quarter of 2013. Adjusted non-GAAP EPS3 from continuing operations excluding domain gains and sales for the first quarter of 2014 was $0.05, compared to $0.04 for the first quarter of 2013.

1 In July 2013, certain pay-per-click assets were sold. As a result, the financial results of these pay-per-click assets are presented as discontinued operations, net of tax in our condensed consolidated statements of operations in accordance with GAAP, and are excluded from all other results unless otherwise noted.

2 Excludes domain sales recognized in GAAP revenue. In September 2013 upon the launch of its domain marketplace, the company commenced recognizing domain sales as revenue.

3 Adjusted OIBA, Adjusted EBITDA and Non-GAAP EPS include the impact of domain gains and sales. Historically, these non-GAAP measures excluded the impact of domain gains and sales.

4 Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.

Marchex Q1 and Recent Call-Driven Business Highlights:

Revenue. Call-Driven and related revenue was $45.5 million for the first quarter of 2014 – a 46 percent increase compared to $31.1 million for the first quarter of 2013.

Customers and Partners. Added more than a dozen new national and reseller customers across several categories, such as Auto Services, Financial Services, and Travel.

Strategic Developments. Marchex raised $32 million as part of its public offering which was completed on April 4th. Marchex intends to use the net proceeds of the offering for general corporate purposes, which may include acquisitions or licenses of, or investments in, products, services, technologies or other businesses.

Archeo Q1 Business Highlights:

Revenue. Archeo non-GAAP revenue was $3.1 million for the first quarter of 2014, which excludes domain sales recognized in GAAP revenue.

Domains sales. During the first quarter of 2014, domain sales yielded $1.9 million.

Business Outlook

The following forward-looking statements reflect Marchex’s expectations as of May 1, 2014 and exclude any contribution from Archeo operations, domain sales and discontinued operations. Archeo operating results would be incremental and additive to our Call-Driven revenue, profitability, and other measures below:

Call-Driven financial guidance for the fiscal year ending December 31, 2014

Call-Driven Revenue       $171 million or more

Call-Driven Adjusted OIBA 1       $8 million or more

Call Driven Adjusted EBITDA 1       $12 million or more

Call-Driven financial guidance for the Second Quarter ending June 30, 2014

Call-Driven Revenue       $43.5 million or more

Call-Driven Adjusted OIBA 1       $1.5-$2.5 million

Call-Driven Adjusted EBITDA 1       $2.5-$3.5 million

1 These non-GAAP Call-Driven measures assign all Marchex corporate overhead costs to the Call-Driven results. Reconciliations of non-GAAP measures are included in the financial tables attached to this press release and we encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures.”